My team has specialized in mobile home park acquisitions for the past three years, and have acquired $100M+ of assets across 50 different parks from mom and pop sellers nationally. We are one of the 50 largest owners of MHPs in the United States. We have invested $30M of equity from friends and family, high net worth individuals, and a joint venture with a real estate private equity fund. We are raising additional capital in expectation of a surge in deal volume at the end of 2021 driven by expectation of changes in both capital gains and 1031 tax treatment. Please reach out for an NDA and a full fundraising presentation. Strong Fundamental Trends High, Growing Demand. Increasing lower income population, rising housing costs, and a lack of affordable housing alternatives drive high demand for mobile home parks. No New Supply. Extremely high barriers to entry create local monopolies for MHPs. The competitive supply of MHPs has declined over the last 20 years. Recession Resiliency. MHPs have the lowest correlation to GDP of any real estate asset class, and grew income steadily through the last two recessions (including the worst housing-led recession in U.S. history). Stability & Pricing Power. The MHP sector has seen zero quarters of negative rent growth in over 20 years. Unique Investment Characteristics Tenant Stickiness. High switching costs ($5,000+ to relocate home) leads to minimal tenant turnover, stable occupancy, and predictable operational performance. Low Capital & Operational Intensity. As a land-lease business, the park owner is only responsible for infrastructure and land maintenance (tenants maintain their own homes). Tenants have pride of ownership and are invested in their own homes. Tax Advantaged, Accelerated Depreciation. MHPs are far more tax efficient than traditional real estate, as land improvements benefit from 100% upfront bonus depreciation (vs###-###-#### years for apartments and 39 years for other commercial real estate). Attractive Capital Markets Opportunity Increasing Institutional Interest. Growing investment interest for assets of portfolio scale. The perception of MHP asset quality amongst institutional investors is changing, albeit slowly. Increasing Liquidity. Baby boomers retiring or passing away and are selling their parks. Systemic Mispricing. MHPs trades at higher yields than apartments despite superior risk-return profile.
To download teaser or contact poster, please sign in.